"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Wednesday, February 2, 2011

Geithner Extends Debt Ceiling Breach by a Couple of Weeks

Geithner Extends Date to Raise Debt Ceiling

The Wall Street Journal
By Jeffrey Sparshott and
Jefff Bater

WASHINGTON—Citing better-than-expected tax receipts, the U.S. Treasury Department on Wednesday extended its estimate of when the country hits the debt ceiling to somewhere between April 5 to May 31.

The new deadline came as part of the Treasury's quarterly refinancing announcement. Treasury Secretary Timothy Geithner on Jan. 6 told lawmakers the U.S. could reach the congressionally imposed debt limit of nearly $14.3 trillion as early as March 31 and probably no later than May 16.

The new dates range from April 5 to May 31, with the possibility of extending that by up to eight weeks if the Treasury takes additional, extraordinary measures.

Failure to raise the debt limit would precipitate a default by the U.S. and have catastrophic economic consequences, Mr. Geithner said. But Republicans are first demanding spending cuts as they look to trim borrowing and reduce the budget deficit.

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